UNIVERSITY OF FLORIDA 

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3 1262 08486 7 497 Registry No. 263-1-()3 

NATIONAL RECOVERY ADMINISTRATION 

PROPOSED CODE OF FAIR COMPETITION 

FOR THE 

SILK TEXTILE INDUSTRY 

AS REVISED FOR PUBLIC HEARING 

WE DO OUR PART 

The Code for the Silk Textile Industry 

in its present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

to be regarded as having received the approval of 

the National Recovery Administration 

as applying to this industry 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washin2ton, D.C. - - - - - - - - Price 5 cents 

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PREAMBLE 

To effectuate the policy of Title I of the National Industrial 

Recovery Act, during the period of the emergency by reducing 

unemployment, improving the standards of labor, eliminating practices inimical to the interests of the public, employees, and employers, 

and otherwise to improve the condition of the silk manufacturing 

industry, to increase the consumption of industrial and agricultural 

products by increasing purchasing power, a.nd in other respects, the 

following provisions are established as a code of fair competition for 

the silk industry: 

ARTICLE I-DEF.INITIONS 

1. The term "Industry";- as used herein, means those concerns 

engaged in the warping and/or weaving and/or converting of silk 

woven fabrics and such weavers and/or converters of rayon fabrics 

as elect or who have elected to come under the provisions of this 

Code. It shall include silk and rayon sewing threads, spun silk, 

woven labels, and such other related branches as may from time to 

time be included under the provisions of this Code. 

2. The term "employers", as used herein, means any persons who 

employ labor in the conduct of any branch of the industry. 

3. The term "employees", as used herein, means any persons employed in the conduct of any branch of the industry (including a 

proprietor, his family, and his relatives doing production work). 

4. The term "productive employee", . as used herein, means any 

employees in the industry, except office employees, repair-shop crews, 

engineers, electricians, firemen, supervising staff, shipping, watching, 

and outside crews. 

5. The term "productive machinery", as used herein, means all 

looms, winders, warpers, coppers, or quillers for the industry; dressing frames for the spun-silk industry; spooling, coning, balling, tubing, 

and skeining for the sewing thread and floss industry. 

6. The term "person", as used herein, means any individual, partnership, association, trust, or corporation. 

7. The word "Association", as used herein, means "The Silk Association of America, Inc.", or its successor. 

8. The word "Division", as used herein, means any branch of the 

industry having a Divisional Committee and operating through the 

Association. 

ARTICLE II 

Employers shall comply with the requirements of the National 

Industrial Recovery Act as follows: 

1. That employees shall have the right to organize and bargain 

collectively through representatives of their own choosing, and shall 

be free from the interference, restraint, or coercion of employers of 

labor, or their agents, in the designation of such representatives, or in 

0099°-33 ( 1) 
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self-organization or in other concerted activities, for the purpose of 

collective bargaining or other mutual aid or protection; 

2. That no employee and no one seeking employment shall be 

required as a condition of employment to join any ompany un1on or 

to r frain from joining, organizing, or assisting a labor organization 

of his own choo ing; and 

3. That employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment, approved 

or prescribed by the President. 

ARTICLE III-HouRs OF LABOR AND ~1ACHINERY Houns 

1. Employers shall not operate on a schedule of hours of labor for 

their productive employees in excess of forty (40) hours per week and 

they shall not operate productive machinery in the industry for more 

than two shifts of forty hours each per week. 

2. No other employee (exceptjng repair-shop crews, engineers, 

electricians, firemen, supervising staff, shipping, watching, and outside crews) shall work more than 480 hours in any twelve weeks, an 

average of 40 hours a week; and not more than 48 hours in any one 

week. 

3. The maximum hours of labor of repair shop crews, engineers, 

and electricians and shall, except in case of emergency work, be 40 

hours a week with a tolerance of 10 percent. Any emergency time 

in any establishment shall be reported monthly through the Association to the General Planning Committee hereinafter provided. A 

schedule of maximum hours for outside erews shall be submitted to 

the Administrator for approval not later than January 1, 1934. 

4. Where a State law specifies a lo\ver maximum number of hours 

that must not be exceeded, the requirements of such State law shall 

govern within that State. 

5. The provisions for maximum hours establishes a maximum 

number of hours of labor per week for each employee so that under no 

circumstances shall any employee be emplo ed or permitted to work 

for more than one employer in the aggregate in excess of the prescribed number of hours. 

ARTICLE IV-MINIMUM wAGES 

1. The minimum wage that shall be paid by employers to any of 

their employees-except learners-shall be at the rate of $12 per week 

when employed in the Southern section and at the rate of $13 per 

week when employed in the Northern section, for forty hours of labor. 

The Southern section shall include the States of: Virginia, North 

Carolina, South Carolina, Georgia, Tennes ee, Alabama, Mississippi, 

Louisiana, Texas, and Florida; the words "Northern Section" are 

defined to mean the rest of the United States. 

2. A learner is hereby defined as one who has served an apprenticeship of less than six weeks in the industry and the rate of pay of such 

employees shall not be le s than 80 percent of the minimum rate. 

Learners in any plant shall not exceed 5 percent of the total number of 

employees in that plant. 

3. The amounts of differences per hour existing prior to July I, 

1933, between the wage rates paid various clas es of employees receiving more than the establi hed minimum wage shall not be decreased. 
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· 4. No member of the industry, however, upon obtaining approval 

by the Administrator shall be required to make any increase in the 

rate of pay per hour to be paid by such m<'mber to any of its employees 

in any wage district where it appears to the sati faction of the Administrator t~at such increase will result in a rate of pay per hour which 

shall be higher than the rate of pay per hour paid to employees doing 

substantially the same class or kind of labor in the same wage district 

by any member of the industry which shall have increased its rate 

of pay per hour in aecordance with the foregoing paragraph 3 of this 

article. 

6. Employees who are physically incapacitated may, of their own 

volition, waiYe their right t.o minimum wages, but no employer shall 

employ such workers at less than standard piece rates or at less than 

$8.00 per week for time work or employ more than one such person in 

plants employing less than one hundred, or one percent, of the total 

employees in any manufacturing establishment. 

ARTICLE V--AGE LIMIT 

No person under the age of sixteen shall be employed in the industry; provided, however, that where a State law provides a higher 

minimum age, no person below the age specified by such State law 

shall be employed within that State. 

ARTICLE VI-ADMINISTRATIVE AGENCY 

1. To effectuate further the policies of the Act, a General Planning 

Committee is hereby designated to cooperate with the Administrator 

as a Planning and Fair Practice Agency for the industry. The Committee shall consist of eleven representatives of the industry elected 

by a fair method of selection, to be approved by the Administrator, 

and three members without vote appointed by the President of the 

United States. Such agency may from time to time present to the 

Administrator recommendations, based on conditions in the industry 

as they may develop from time to time, which will tend to effectuate 

the operation of the provisions of this Code and the policy of the Act. 

Such recommendations, when approved by the Administrator, shall 

have the same force and effect as any other provisions of this Code. 

2. The expenses of administering this Code by the General Planning Committee for the industry shall be borne by the employers in 

such proportions and amounts and in such manner as may be determined from time to time by such Committee. Failure of any 

employer to pay any assessment for a period of thirty days after the 

date on which it became payable shall constitute a violation of the 

Code. · 3. Such Committee shall also cooperate with the Administrator in 

making investigations as to the functioning and observance of any 

provisions of this Code and, at its own instance or on complaint by 

any person affected, report thereon to the Administrator. Such 

Committee, by a duly authorized representative or representatives, 

shall have power to examine all books and records of employers to 

ascertain whether they are observing the provisions hereof, and 

employers shall submit such books and records to the Committee for 

such examination when requested. 
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4. Such Committee shall not present to the Admini trator any 

Code or propo ed amendment of any Code affectincr any "Division" 

without first onferring with that "Division" or its representatives, 

and if such "Division" does not consent thereto, giving the division 

notice of date of propo ed presentation. 

5. No "Division" shall make any application to the Administrator 

for the approval of any Code or amendment thereof without first 

notifying such Committee and giving it notice of the proposed date 

of presentation and hearing thereon. 

ARTICLE VII-REPORTS 

1. With a view to keeping the President informed as to the observance or nonobservance of this Code of Fair Competition, and as to 

whether the industry is taking appropriate steps to effectuate the 

declared policy of the Act, each employer will furnish the General Plannin~ Committee, as and when required, with duly certified 

reports m substance as follows and in such form as may hereafter be 

provided: 

(a) Wages and hours of labor.-Returns every four weeks showing 

actual hours worked by the various occupational groups of employees 

and minimum weekly rates of wages. 

(b) Machinery data.-Mills having no looms but doing commission warping, winding, copping, and/or quilling, and other activities 

specified under "productive machinery" must furnish every four 

weeks such reports and information called for, pursuant to the provisions of this or any amended code. In the case of mills that have 

looms, returns shall be made every four weeks showing the number 

of looms in place, the number of looms actually operated each week, 

the number of shifts, and the total number of loom-hours each week. 

(c) Reports of Production, Stocks, and Orders.-Weekly returns 

showing production in terms of the commonly used unit, i.e., linear 

yards, or pounds or pieces; stocks on hand both sold and unsold 

stated in the same terms and unfilled orders stated also in the same 

terms. The "Association", address 468 Fourth Avenue, New York 

City, is constituted the agency to collect and receive such reports. 

2. Each person shall, from time to time, upon request of the Association or the General Planning Committee approved by the Administrator, furnish any other reports and information called for pursuant 

to the provisions or pertinent to the purposes of this or any amended 

Code. 

ARTICLE VIII-CoMPETITIVE PRACTICES 

1. Each employer shall afford equal terms, prices, and advantages 

to all buyers similarly situated, and shall permit no unfair discrimination to be made in merchandising terms, prices, or practices. 

2. No employer shall take orders to manufacture merchandise 

below cost. 

3. Where goods are shipped on consignment or memorandum and 

the buyer does not return them within ten days, they shall be invoiced 

as of the date of shipment and shall be paid for accordingly. 

4. Any dispute or clajm on finished merchandise must be made in 

writing within ten working days after receipt of goods and no claim 

or allowance shall be made for such goods after they haye been cut. 

5. It shall be unfair competition to place any order for printing or 

Jacquard weaving or to do any printing or Jacquard weaving of any 
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d~sign not registered with the Textile De ign Registration Bureau 

of The ilk Asso iation of America, Inc., or to do any work on any 

register d de ign except with the written con ent of the per on making 

the registration. ( ewing threads, tie fabrics, and flosses are 

excluded.) 

6. All transactions between buyers and sellers in excess of $500.00 

shall be confirmed by signed con tracts. It is the purpose of this 

section that records, documents and book entries shall accurately 

reflect all such transactions and that no such entry or document 

usually made in the normal course of business shall be omitted in 

whole or in part, so that the original transaction and all modifications 

thereof will be accurately reflected in, and easily ascertainable from 

an inspection of, available books and documents. 

7. Selling terms, etc., shall be as per Schedule A annexed. 

8. Where the costs of executing contracts entered into in the industry prior to the effective date of this Code are increased as a result 

of the operation of the provisions hereof it is equitable and promotive 

of the purposes of the National Industrial Recovery Act and this Code 

that appropriate adjustments of such contracts to reflect such increased costs be arrived at by arbitration proceedings or otherwise; 

and that where performance of orders accepted prior to the effective 

date of this Code be delayed or prolonged as a result of the operation 

of the provisions hereof apJ?rop~ate additio?al time for per:formance 

should be sought by arb1tratwn proceedings or othennse. The 

Association is hereby constituted an agency to assist in effecting such 

adjustments where such adjustments are not agreed upon by the 

parties. 

ARTICLE IX-AMENDMENTS, MoDIFICATIONs, AND ADDITIONS 

1. Such of the provisions of this code as are not required to be 

included therein by theN ational Recovery Act may, with the approval 

of the President, be modified or eliminated in such manner as may be 

indicated by the needs of the public, by changes in circumstances, or 

by experience: all the provisions of this code, unless so modified or 

eliminated, shall remain in effect until the expiration date of Title I 

of the National Recovery Act. 

2. In order to enable the industry to conduct its operations subject 

to the provisions of this code, to establish fair trade practices within 

the industry and with those dealing with the industry, and otherwise 

to effectuate the purpose of Title I of the Act, supplementary pro· 

visions of this code or additional codes may be submitted from time 

to time for the approval of the President. 

3. This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with provi ions of 

Clause 10 (b) of the National Industrial Recovery Act, from time to 

time to cancel or modify any order, approval, license, rule, or regulation, issued under Title I of said Act, and spocifically to the right of 

the President to cancel or modify his approval of this Code or any 

conditions imposed by him upon hi~ approyal there f. 

ARTICLE X-EFFECTIVE DATE 

This Code shall become effective on the second Monday following 

its approval by the President. 
SCHEDULE A OF THE CODE OF FAIR PRACTICE FOR THE SILK 

TEXTILE INDUSTRY 

BROAD GOODS WEAVERS AND CONVERTERS 

For raw broad goods, terms shall not exceed 60 days. For finished 

broad goods, the terms shall be either 6/10/60 or a maximum of 8/10 

e.o.m. Additional dating as of the first of the following month may 

be given on any merchandise delivered after the 25th of the month, 

and no anticipation shall be allowed at any rate higher than 6% per 

annum. No optional terms to be given. 

HAT BANDS 

For wholesale manufacturers of hats 1n the United States of 

America. 

Terms, 10/10, e.o.m.; 25th of the month as of the first of the following month; payment to be made in currency, check, or if made 

in trade acceptance or note, interest must be paid at the rate of 6% 

per annum; anticipation to be at the rate of 6% per annum. 

All sales shall be made on the basis of f.o.b. shipping point. Six 

months after date of contract, any goods undelivered shall be billed 

and such billing shall constitute delivery. 

RIBBONS 

All sales of ribbons shall be on the basis of 6/10/60 or 7/10 e.o.m .. or its equivalent, shipped after the 25th of the month as of the first 

of the following month. Anticipation at the rate of 6% per annum, 

No seasonal datings shall be granted. All past due bills shall bear 

interest at the rate of 6%. No shipments shall be on consignment 

or memorandum. No goods shall be redyed or reprocessed free of 

charge. No exchanges shall be made. No tender of return shall be 

accepted after ten days, and all disputes must be settled immediately. 

Returns shall be accepted only for manufacturing defects or if mer- chandise was originally submitted as sample. All merchandi e shall 

be shipped f.o.b. shipping point. The rule in the General Code in 

regard to confirmation of all orders by signed contracts shall apply 

only to orders for future delivery in excess of three weeks. Where 

a contract covers the sale of goods in which the assortments are not 

determined at the time of sale, there must be three weeks time 

allowed for delivery to be made. If the assortments are not given, 

seller shall bill the customer on the contract date of delivery for the 

full value of the merchandise covered by the contract. 

SEWING THREADS AND FLOSSES 

No goods may be consigned or shipped on memorandum. No 

datings may be allowed. The goods of other sewing thread and floss 

manufacturers must not be purchased or exchanged for the purpose 

of substitution. Cash discount, 2%, 10 days, e.o.m., may not be 

exceeded. No protection to retail accounts on their unsold stocks 

in case of decline in price. Stock protection to Notion Jobbers on 

(6) 
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30-day purchases previous to date of decline is proper, provided such 

purchases do not exceed the stock on hand at the time of decline. 

Should the purchases amount to more than the stock on hand, the 

protection will be stock on hand. 

SPECIAL FABRICS 

Shipping on memorandum and billing at a later date constitutes 

an unfair method of competition as it defeats uniform selling terms. 

Any goods invoiced on 1nemorandum which are subsequently invoiced 

regularly shall be billed on the date of shipment on memorandum. 

At the beginning of the spring season, spring goods are to be dated as 

December 1, and at the beginning of the fall season, fall goods are 

to be dated as July 1. On finished merchandise, the maximum terms 

are to be 6%, 10 days, and 60 days dating, or a maximum of 8%, 10 

days, e.o.m., goods shipped after the 25th of the month to be dated 

from the first of the following month. 

SPUN YARNS 

Maximum discount shall be 2%, 10 days, e.o.m. Allowance for 

cooperative advertising and sale promotion between buyer and seller 

may be permitted on novelty yarns. Purchasers shall not be allowed 

any commissions, bonuses, rebates, subsidies, or privileges of any 

kind, whether in form of money, services, or otherwise. No close-out 

sales shall be made without the permission of the Divisional Planning 

Committee. 

TIE FABRICS 

6/10/60, no e.o.m. dating. Anticipation at the rate of 6% per 

annum. Interest shall be paid on deferred deliveries at the rate of 

6% per annum. Not more than sixty days shall elapse between delivery of samples and delivery of merchandise. No orders for sample 

lengths shall be taken without orders for goods for later delivery. 

No extra dating shall be given on samples. No member of the Tie 

Silk Industry shall ship merchandise on consignment or memorandum 

except to his duly accredited agent. 

WOVEN LABELS 

Shipping on memorandum and billing at another date constitutes 

an unfair method of competition and no goods shall be billed more 

than sixty days after date of shipment. Terms, 2/10 e.o.m. 

THROWN SILK, THROWN RAYON, AND SYNTHETIC YARN DEALERS 

All transactions between buyers and sellers shall be confirmed by 

signed contracts and subject to following terms: To Hosiery Manufacturers, 1/10 e.o.m., net 60 days' trade acceptance from date of 

shipment; to Weavers, 1,0 days, 1%, net 60 days' trade acceptance 

from date of shipment. Interest shall be paid on deferred deliveries 

at the rate of 6% per annum. 

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